University of Michigan HospitalsFacility Services--Stockroom

Analysis of Facility Services Stockroom OperationsFinal Report

April 26, 1994

Management Systems DepartmentRosa Haydee Cardona

Pauline Cheng

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Table of Contents

Executive Summary 1

Introduction and Background 3

Purpose 5

Objective 5

Methodology 5

Findings and Conclusions 7

Recommendations 10

Action Plan 15

Appendix A

Screen Print of Maintenance Management System Record 17

Appendix B

Screen Print of MMS Records Before and After AREV Download 18

Appendix C

Flow Process Diagrams Showing Extra Work 19

Appendix D

Screen Print of Maximum Stock Quantity vs. Quantity Ordered 20

Appendix E

Areas of Processes For Elimination With Implementation of

Recommendation 21

Appendix F

Current Process Flow Diagrams 22

Executive Summary

The Facility Stockroom was studied to recommend guidelines which could be implementedto improve the productivity of the Stockroom. The study finds there are problems with theintegrity of the information in the Stockroom’s inventory tracking system, MaintenanceManagement System (MMS). Inaccurate data in the Maintenance Management Systemmisleads its users. The users’ response to the data (such as purchasing stock items asemergency orders through the Hospital Order Specialists, extra work of the stockkeeperschecking bins, reordering stock items already on order, etc.) adds to the cost of maintainingthe Stockroom. Poor data integrity also causes variance between the value of the stock inthe Maintenance Management System and the actual value of the stock on hand determinedat the fiscal year end’s physical inventory count. By improving the integrity of the data inMMS, the variance will decrease as well as costs due to extra work incurred by theStockroom.

Factors effecting the data integrity of the Maintenance Management System include:

Frailty of Stockroom processes.The Stockroom is designed to use two computer systems to maintain informationon inventory--MMS and Advanced Revelations (AREV). MMS is available in twoversions--stand alone MMS (used by the Data Entry Clerk to enter information intothe tracking system) and local area network MMS (used by anyone with access tothe network MMS to obtain stock item information). AREV is the Stockroom’spurchasing system and is only available on the network. It keeps track of the dailyorder placements and order receipts. The Stockroom’s present processes requiredaily uploads and downloads for these computer systems. If an upload ordownload is not performed or not performed in its proper sequence, the informationis in danger of being lost. Besides being lost, information that is transferredbetween the two systems is 24 hours behind real-time. Therefore, anyoneaccessing the network version of MMS may not be seeing correct data.

Human error using the processes.Customers complete worksheets indicating the stock items they take from theStockroom. These worksheets include a large amount of numerical information thatallows for error. Some numbers, include work orders, accounts, stock items,quantities, etc. The Data Entry Clerk then takes these worksheets and enters theinformation from the worksheets to MMS. Information transferred here also allowsopportunity for error. The accuracy of the data in MMS is further delayed whencustomers do not submit the worksheets for entry into MMS upon leaving theStockroom with stock items.

The above items cause the data in MMS to be incorrect. As a result, reorder reports whichinform the Hospital Order Specialists and Stockkeepers when to reorder stock items arewrong so they are not printed and referred to for stock reordering. If stock is notreordered, stockouts occur which may greatly effect emergency jobs of the customers.Customers needing stock parts to perform emergency repairs then ask the Hospital OrderSpecialist to rush order the part from the supplier. Rush orders may result in overnightdelivery charges. If the supplier is not able to deliver the part and is located in Ann Arbor,a Stockkeeper may be sent to pick up the part.

Incorrect MMS information may also cause the misconception that an order is not placed.This results in extra orders for items that are actually on order but not being displayed inMMS as on order. The additional stock received then sits in the Stockroom producingholding costs.

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Recommendations are proposed and an action plan suggested which places emphasis on akey target:

Continuous Improvement of the Data Integrity in theInventory Tracking System Used by the Stockroom.

Recommendations to improve the integrity of the data are as follows:

A new inventory tracking system should be purchased and placed on the network toperform the functions of both Advanced Revelations (AREV) and MaintenanceManagement System (MMS). This would eliminate the need for daily uploads anddownloads for the tracking system. It would also allow the customer access to datacloser to real-time than the present processes. Since the purchase of another systemrequires extensive research, in the meantime, it is recommended that MMS be usedon the network for entry and access of inventory data. Using MMS on the networkfor entry simplifies the downloads received from AREV into MMS, eliminates thedependency of downloads on the network server and allows more frequentdownloads to improve real-time data provided for customer use.

Bar coding the bins of each stock part, as well as providing customers with handheld bar code readers, should be implemented to decrease the numerical error whichaccompanies the transferring of stock item information from the bins to thecustomer worksheets and from the worksheets into MMS. Customers can scanitems they plan to take out of the Stockroom as they pick up the item. When thecustomer leaves, he would simply deposit the bar code reader at the Data EntryClerk’s workstation where the information from the reader is downloaded into theinventory tracking system. Estimated cost for a bar coding system given by Nohr& Associates (a University affiliated business specializing in inventory trackingsystems) is $9105. This cost includes 10 bar code readers, 5 battery rechargers,software to download the data from the readers into MMS, software to create barcodes, 16,000 labels to print bar codes on and a laser printer to print the labels.

Customers leaving the Stockroom should have their worksheets checked andcollected by the Data Entry Clerk for completeness and legibility. Since the DataEntry Clerk is now situated by the Stockroom door, customers must pass by theclerk while exiting. At that time, the Data Entry Clerk can easily see if theworksheet header (containing work order, numbers and other administrativeinformation) is filled. This will reduce work for the Data Entry Clerk. Extra workincludes calling the customer to find the incomplete information. These worksheetswould accompany the bar code reader to inform the Data Entry Clerk who thecustomer is.

Additional training for the Stockkeepers ordering stock. Since the job of orderingstock is a fairly new task added to the Stockkeepers’ duties, minimal training wasprovided for them to learn how to reorder stock and determine how much stock toreorder. The quantity pertaining to how much stock is recommended for orderingis called the ‘maximum stock quantity’ in MMS. Due to varied usage of stockitems, the ‘maximum stock quantity’ should be evaluated. By learning how todetermine maximum quantities to reorder, there is less chance of overstocking orunder stocking.

The above suggestions should be implemented to improve the integrity of the informationin the inventory tracking system.

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Introduction and Background

The Facility Services division has several departments, four of which are the Stockroom,Maintenance, BioMedical Engineering and Alterations departments. The Facility ServicesStockroom serves as a distributor of inventory for Facility Services’ Alterations,BioMedical Engineering and Maintenance departments. The inventory is stored on-site inroom B2A205 of the University of Michigan Hospitals for emergency and day-to-daysupply needs. The manner in which the customers use the stockroom is described ingeneral below:

1. Alterations Department

The Alterations department primarily works on pre-scheduled assignments. Since theirassignments are pre-scheduled, they can anticipate the stock or non-stock items theywill need and the quantities of each. To assure that the stock is available at the time ofneed, Alterations orders most of their stock through their Hospital Order Specialist(Buyer). The orders are received in the Facility Stockroom and are picked up forstorage in Alterations’ personal storage space on the 9th floor of the UniversityHospitals or in rooms NI1DO4 and N11506 of the North Ingalls Building. Alterationsmay use stock in the Stockroom for smaller jobs.

2. BioMedical Engineering Department

BioMedical Engineering assignments vary from emergency jobs to preventativemaintenance. They can require non-stock item orders, repairs and stock item usage ofBioMedical stock and Facility Stockroom stock. The BioMedical Engineeringdepartment has its own stockroom in room B2A108 and satellite stockrooms whichcontain stock items for BioMedical use. BioMedical customers also have access to theFacility Stockroom for non-BioMedical parts. Non-BioMedical customers also haveaccess to the BioMedical stockrooms before 3:30 p.m. each day, after which timeaccess can be obtained by finding a BioMedical technician to unlock the stockrooms.The BioMedical Engineering department also has a Hospital Order Specialist (Buyer) tomaintain the stock in the BioMedical stockroom and its satellite stockrooms.

3. Maintenance Department

The Maintenance department engages in assignments ranging from emergency jobs topredictive and preventative maintenance work. They are the biggest customer of theFacility Stockroom. The Maintenance department also has a Hospital Order Specialist(Buyer) to order non-stock items.

4. Other Departments

Other departments may require the services of the Facility Stockroom to place ordersfor parts. The Facility Stockroom obliges as long as the department has an accountnumber to charge the orders.

Presently, the Facility Stockroom is managed by the Business Manager. The Stockroomitself is maintained by the Business Manager, three Level 3 Stockkeepers, one Data EntryClerk, one stock items Hospital Order Specialist and one Administrative Assistant. Thepersonnel of this department also work with the Hospital Order Specialist (Buyer) of theAlterations, BioMedical Engineering and Maintenance departments.

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The Facility Stockroom presently uses two computer applications to track inventory in thestockrooms and orders and receipts of inventory. A computer application calledMaintenance Management System (MMS) tracks the inventory in the stockrooms. MMS isused in two forms--a stand alone form and a network form. The stand alone version ofMMS is found in the Facility Stockroom and is used by the Data Entry Clerk.

MMS is used in a stand alone version because the network used to shut down. Frequentshut downs, prohibited the Data Entry Clerk from providing up to date informationregarding stock items in MMS. The Maintenance department also uses an unmountedsystem to track its work orders. Their system cannot communicate with the networkversion of MMS, only the stand alone version. It is necessary for the Maintenance workorder tracking system to talk with MMS in order to check if the work order numbersentered on the customers’ worksheets are valid.

The network version of MMS can be accessed throughout the University of MichiganHospitals to check for stock items. MMS contains the following information for stockitems:

part number description unit of measureproduct key manufacturer manufacturer part numberdelivery time vendor vendor part numberorder date stock on hand stock on orderstock committed reorder level amount of year-to-date soldsale price control number locationequipment manufacturer reference physical inventorylast cost beginning quantity beginning quantity valuemaximum stock quantity model number size/type

(See Appendix A for a screen print of a record of the Maintenance Management System)

The other computer application used to record orders and receipts of inventory as well ashandle other purchasing functions is called Advanced Revelations (AREV). AREV is anapplication on the network and is accessed by Hospital Order Specialists and Stockkeepersto enter inventory (stock and non-stock) orders and receipts. -

The Stockroom holds inventory for its customers’ assignments. Since some of theassignments are emergency-based, the inventory to complete the assignment needs to bekept on-site and ready for use. Although the Stockroom appears to have an abundance ofmaterials on-hand, it is actually having problems keeping the stock available and ready foruse. Much of the stock re-orders are performed when stockouts are discovered.Reordering on stockout basis, however, costs more if the part is ordered for overnightdelivery because it is needed for an emergency job. The Stockroom Business Managerapproximated one year’s worth of rush delivery costs to be $19,000 for the Stockroom and$15,000 for the BioMedical department. The BioMedical department’s rush deliverycharges would be relevant here because BioMedical inventory is also tracked by theMaintenance Management System. Not only is there a cost of having parts rusheddelivered, but the Stockroom also incurs a cost in the customers’ confidence in theStockroom.

In addition, the customers are moving towards more preventive and predictivemaintenance, as opposed to corrective maintenance. More scheduled projects, instead ofemergency projects can allow the Stockroom to plan its inventory usage better.

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Purpose

The purpose of this project is to analyze the processes in the Stockroom and how theAlterations, Biomedical Engineering and Maintenance department use the Stockroom, inorder to identify opportunities to improve the level of inventory presently stored in theStockroom.

Objective

The primary objective of this project is to reduce the cost of the Stockroom. Reducing thecost can be achieved by improving the processes of the Stockroom.

Presently, lack of data integrity causes extra work costs as well as variance costs betweenthe value of the stock in the Maintenance Management System and the actual value of stockin the Stockroom obtained from the fiscal year end’s physical inventory count. These costscan be reduced by improving the accuracy of data in MMS. (See Findings andConclusions and Recommendations for more detailed explanations.)

Methodology

To accomplish the stated objective and purpose, the following methodologies were used:

a. Interview Stockroom personnel to learn the processes involved in maintaining theStockroom. Learning the present Stockroom processes allowed the processes to bestudied.

Interviews were performed with the Stockroom Business Manager, Stockroom’sData Entry Clerk, two of the Stockkeepers, and the Hospital Order Specialist forStock Items. In these meetings, the Stockroom personnel spoke about their dutiesand opinions of the Stockroom processes. Careful precautions were taken toseparate the two types of information--current processes and opinions of processes.Questions were asked when necessary.

b. Interview Maintenance, BioMedical Engineering and Alterations personnel to learnthe processes involved in using the Stockroom. Learning how the Stockrooms’customers use the Stockroom and their opinions of the present Stockroomprocesses allowed the study to focus on which processes work and whichprocesses do not work from the customers’ point of view.

Interviews were conducted with the Hospital Order Specialist (Buyer) forBioMedical Engineering, Maintenance and briefly with the Hospital Order Specialistfor Alterations. The BioMedical Engineering and Maintenance Buyers spoke abouttheir duties and the procedures they follow to accomplish certain tasks. TheAlterations Buyer explained some of the procedures he follows to serve theAlterations department and expressed his opinion about the Facility Stockroom.BioMedical Technicians, Maintenance customers and a Alterations worker werealso interviewed to learn how they use the Facility Stockroom, the BioMedicalEngineering Stockroom or the BioMedical Satellite Stockrooms. Circumstancesunder which these customers would use the Stockroom and their opinions of howthe stockrooms worked was also learned. In all discussions with the Maintenance,BioMedical Engineering and Alterations department, questions were askedwhenever necessary.

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c. Interview Material Services department, Dietetic department and University Storesto learn their inventory control processes. Learning other departments’ inventorycontrol processes allowed the advantages and disadvantages of other inventorycontrol methods to become apparent.

When the interview was performed with the Material Services department, theservice of the Material Services department to its Customers and its method ofcontrolling stock was learned. Its main advantage was its Just-In-Time deliverysystem which allowed Material Services to keep a limited amount of stock on hand.Limiting the stock on hand reduces holding costs for the department. The Dieteticdepartment explained the computer application it uses to track its inventory and thereporting functions available through the computer software. For the UniversityStores’ interview, a tour of the facility explained how University Stores operates,how it presently maintains its stock and future plans for inventory control in theUniversity Stores (which included its plans to implement a bar coding system).As with the other interviews, questions were asked when necessary.

d. Flow chart the Facility Stockroom’s current processes to find areas where theprocesses may be improved. Flow charting enables the areas of the Stockroomprocesses where improvements were thought to be possible to be put in print. Italso allows a visualization of the Stockroom’s many processes working together.

A DOS-based graphical software called All Clear was used to flow chart theStockroom’s processes. This software was recommend and provided for use bythe Facility Services Division. The Business Manager of the Facility Stockroomalso provided disks for a copy of all flow charts diagramming the Stockroom’sprocesses at the completion of the project.

e. Data collection from fiscal year-end reports. Data obtained from these reportsprovided an understanding about the variances the Stockroom is experiencingbetween information on the Maintenance Management System (MMS) and the fiscalyear-end physical inventory coutits.

The information from these reports is used to support the economic impact ofrecommendations. See the Recommendations portion of this report for moredetails.

f. Data collection from the Maintenance Management System (MMS) and AdvancedRevelations (AREV). Data obtained from these computer systems allowed anunderstanding of the systems presently tracking inventory for the Stockroom.

The information from these reports is used to support the frailty of the presentStockroom processes. See the Findings and Conclusions portion of this report formore details.

g. Analyze flow charts and data collected to determine conclusions and makerecommendations.

See the Findings and Conclusions and Recommendations portions of this report formore details.

h. Additional information gathering from University Stores and Nohr & Associates (aprivate firm specializing in inventory tracking systems such as the bar coding

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system). Information from these sources provided the information to develop thefinancial impact of certain inventory control systems (namely bar coding).

The information from these sOurces is used to support the economic feasibility oftheir recommendations. See the Recommendations portion of this report for moredetails.

i. Additional information gathering from Facility Stockroom Business Manager,Human Resources and Staff & Benefits to learn the present costs of staffing theStockroom. Information from these sources allowed cost analysis to be performed.

The base salaries and percentages of benefits are used to support the economicfeasibility of recommendations. See the Recommendations portion of this reportfor more details.

j. Cost analysis of the present Stockroom processes and recommendations to improvethe Stockroom processes to support the economic feasibility of therecommendations.

The information from the data collections and additional information gatheringregarding employee salaries mentioned above were compiled to support therecommendations for Stockroom processes improvement.

Findings and Conclusions

Through the research conducted, different reasons have been identified which cause theStockroom to perform below the level it should. The key findings for the research whichwill be presented in this report are:

Uploading and downloading information between the stand alone MaintenanceManagement System (MMS), the network Maintenance Management System andAdvanced Revelations (AREV) is a fragile process. Since these systems function indifferent computing environments, it is necessary to transfer information from oneto the other by means of uploading the information from the stand alone MMS tothe network MMS at the end of the thy and downloading from AREV to the standalone MMS at the beginning of the next day. See figure 1 on the next page for agraphical presentation of the linkage of MMS and AREV.

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Figure 1:

Relationship between the Inventory Tracking System and thePurchasing System Used in the Stockroom

It was found, however, that the process of downloading and uploading is extremelyfragile. This is because when the uploading/downloading procedure is notperformed everyday, the information from one system or both is not exchanged.When the uploading/downloading procedures are performed the following day, theinformation that was not exchanged the previous day is overwritten. Not doing theuploading/downloading everyday is not a rare occurrence. For the download fromAREV to the stand alone MMS to occur, the whole local area network is shutdown. This restricts the download to being performed only before 7:15 am eachmorning. If by chance, the Data Entry Clerk is unable to download from AREV,the information may be lost unless the Data Entry Clerk calls to ask that a ZIP filebe made in order to save any unexchanged information. In Appendix B, a sample

Stand - Alone

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of two screen prints can be found. One screen print was performed between 6:30a.m. and 7:00 a.m. before the download and the other was performed after thedownload that same day. Note that the first screen print (before download) showedno stock on order, yet the second screen print (after download) displayed stockbeing received. This is attributed to a download not being executed one morning inthe past, so the orders for that previous day were lost.

This makes the strict sequence of events performing the download/uploadprocedure important.

Yet another problem caused by the transfer of information between systems is that,when MMS reads the information from AREV, it reads in the quantity of the itembut does not read in the units of measurement of the quantity. This causes theproblem that, if the person who receives the item enters it into AREV in a unit ofmeasurement other than the one used on MMS, the result would be MMScontaining the wrong quantity for the item received. In general, theupload/download procedure causes the problem that unless it is carried out toperfection, it will most likely transfer bad information.

Effecting the accuracy of the information kept in this system, is incorrectinformation from the customers’, involvement with the Stockroom processes. It hasbeen discovered that the data sheets completed by the customers stating what partswere taken are sometimes incorrect. A previous study by the Stockroom QualityImprovement Team (Q1T) found that 16% of the worksheets contained at least onemistake. These mistakes ranged from filling in the wrong part number to writing inthe wrong units of measurement for the part taken. These mistakes cause MMS tohave information which is not correct.

Some of the most common reasons for incorrect worksheets are:

1. Customers being in a rush, and trying to fill out the worksheets as soon aspossible.

2. Customers in a rush, take the part and plan on bringing back the worksheetlater. In the past, later has been any time from an hour to a few months.

3. Customers not having a pencil with them, not wanting to go back, do not fillout the worksheet.

4. Customers writing in an illegible manner, which causes a delay in the entry ofthe form into MMS, because of the time it takes to interpret the name of thetechnician. Sometimes several calls are made to find out what was taken orwhat a work order number is.

Incorrect worksheets cause an inaccuracy in the information of the systems anddiscrepancies in the stock which the system shows as actual stock. Since a report isonly as accurate as the information it is reporting from, incorrect information inMMS causes buyers not to print out reorder reports. Reorder reports are needed tohelp avoid stockouts. They list stock items whose stock on hand level in MMS hasreached its reorder level.

Another problem incorrect inventory tracking information causes is extra work. Ascan be seen in Flow Process Diagrams 17 (Customer) and 27 (BioMedicalEngineering Customer), when a customer is looking for a part and asks theStockkeeper for help to locate it, the Stockkeeper looks for the part location inMMS. If the record for the part also indicates there is no stock on hand, theStockkeeper will still look in the bin. (See Appendix C for examples from Flow

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Process Diagrams that show extra work due to poor data integrity.) Steps of thisnature can be eliminated if the inventory tracking system can be relied upon.

One idea for correcting the problem of data integrity is to hire an additionalStockkeeper to perform physical inventory count year round. It was found,however, that a Stockkeeper who is accountable for his actions has an annual basesalary of $25,771. In addition to this, the Hospital would need to add benefits,which was found to be about $9,535. This makes the total cost of hiring a newStockkeeper $35,306. Since last year’s variance between the information in MMSand the information for the fiscal year end physical inventory count, wasapproximately $53,000, a new Stockkeeper is not warranted.

Determining maximum stock quantities to be reordered is also a problem. Themaximum stock quantity is the maximum number of a part that should be reorderedat any one time. Its value should be found by comparing its usage values stored inMMS. Unless a customer requests a specific quantity, the Stockkeeper usuallyorders the maximum stock quantity listed in MMS for each part.

The maximum stock quantity, however, is outdated and does not accurately reflectthe usage of the stock item. MMS does not have the capability to update themaximum stock quantity based on the usage of the item. Since Stockkeepers justrecently obtained the task of reordering stock, they have not been taught how todetermine a reasonable maximum quantity to reorder with the MMS informationavailable (such as year-to-date sold). Orders made without determining areasonable quantity to reorder stock with, tend to order too much or too little. If toomuch stock is ordered, the parts sit on the shelves longer. Anything sitting on theStockroom shelves causes holding costs for the Stockroom. If too little stock isordered, the stock item may need to be reordered more often. If the stock reachesthe reorder level and it is not noticed, a stockout occurs. Stockouts can increasecosts if the part is needed for emergency situations.

As with the example given earlier pertaining to the stock on orders not received inMMS, Appendix D shows another stock item screen print before the morningAREV download. On this screen no stock is shown to be on order and the year-to-date sold quantity is only 5. The maximum stock quantity for reordering is listed as5 parts also, but since the movement of this part appears to be slow (year-to-datequantity), it may not be necessary to orderS more parts.

Therefore, it is important for the Stock.keepers and Hospital Order Specialists toknow how to determine maximum quantities to reorder and to practice it with everyitem being reordered.

These are just some of the findings made during the study of the Stockroom. Otherfindings, though relevant for improving customer service, are not discussed here due tolack of time to investigate the findings further in order to make suggestions for its remedy.

Recommendations

Different ways to tackle the problems the Stockroom is currently facing have been studied.The problems outlined in the Findings section are negatively effecting the Stockroom. Therecommendations given here seek to reduce the problems, and hopefully eliminate them.Below are recommendations which can be followed:

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• Involving the Stockroom workers and customers in the key target: ContinuousImprovement ofData Integrity in the Inventory Tracking System Used by theStockroom. Informing customers of the new target can make them more aware ofthe objective they work towards. Through interviewing a sample of Stockroomcustomers, it was found there were misunderstandings between the Stockroom andits customers because of many reasons, most of which could be traced back to theirperception of the Stockroom not caring about their customers’ needs. Making thecustomers more aware of the goals would:

a. Increase their willingness to help the Stockroomb. Allow them to realize the desire of the Stockroom to help themc. Encourage them to cooperate more and pay attention to the accuracy of

information being entered into the worksheets in the Stockroom.

• Finding a computer application which performs the functions of both AREV andMMS. This would allow inventory tracking and purchasing functions to interactactively and eliminate the need for the uploading and downloading processes of theStockroom. It would also provide for more real-time data for customers andStockroom personnel to use. This is desirable because under the current situation,AREV and MiMS only interact once a day. Therefore during an average day theinformation on both systems is different, depending on the level of activity in theStockroom. The importance of correct information cannot be undermined. Bychanging the way both systems interact, accuracy of the systems will increase.

By purchasing a system to perform the functions of both MMS and AREV, manysteps in the process can be eliminated. It would eliminate all the steps which arecurrently taken to verify that the information on both systems agree, such asprinting reports on both systems and seeing whether the quantities match. Thiswould be the ultimate step in reconciling the information, since one system wouldhave all the information. It would also eliminate the need for the Data Entry Clerkto switch from one system to the other while performing his/her duties. Acombination system would carrythe added benefit of having all reports under onesystem, instead of printing different reports from different systems, depending onwhat kind of report is needed. Appendix E provides graphical presentations ofparts of processes or entire processes that will be eliminated if a new system ispurchased to do the job of AREV and MMS.

At the time of acquiring new software, thought should be given to obtaining asoftware which will support a perpetual inventory and one where new reports couldbe generated. Currently, AREV does not have the flexibility for its users to createtheir own reports, and MMS does not support perpetual inventory. Perpetualinventory should be a future step for the Stockroom to consider in order to keepincreasing their data integrity.

While looking for a new computer application, however, the stand alone MMSshould be eliminated and the network MMS used for all transactions. By using thenetwork MMS, AREV and MMS can communicate more easily. Although theuploading and downloading procedures are not eliminated, the steps to performthem are decreased, making the processes less brittle. The server will also nolonger need to be shut down to perform uploads and downloads. Since the serveris no longer an issue, AREV and MMS can upload and download more frequentlyduring the day, thereby improving the real-time data seen by customers accessingMMS.

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From now until the network MMS can be used for entry, however, it isrecommended that information entered into AREV also be manually entered intoMMS. The information includes order received and orders placed the previous day.This would eliminate the download process from AREV to MMS. The process ofdownloading information between AREV and MMS produces discrepancies when itis not properly performed. The download procedure should be stopped as soon aspossible and replaced with manual entry of AREV information into the stand aloneMMS until the network MMS can be used for information entry. Manual entry ofinformation will also improve real-time data for customer use, if the Data EntryClerk does not wait until the next morning to perform the entries.

Manual entry will require extra labor, but should only be a temporary solution untilthe network version of MMS can accept entry of transactions. It is believed thatentering the receipts and orders manually is not unreasonable, and it will not causemuch problem to implement because of available man hours. The amount of dataentry required to input order receipts and placements by the Data Entry Clerk willvary day to day depending on how many orders are placed that day and how manyorders are received. Each order arrival or order placement would require a changein the MMS information. The Data Entry Clerk estimated each MMS informationchange to be 30 seconds. Therefore manual entry would not be an extremely timeconsuming task. However, it should not be seen as a solution since it does requireadditional labor and time.

With MMS on the network and the Maintenance department mounting their system,the Maintenance department can post their transactions throughout the year ratherthan just once a month. When the Maintenance department posts its transactions,the work order numbers from their system is compared with the work ordernumbers in MMS to determine whether a valid work order number was entered intoMMS. The work order number is needed to assure the right account is beingcharged for the materials listed for that work order number.

Incorporating a bar coding system to reduce the amount of human erroraccumulating from worksheet completion and worksheet entry into MMS. A barcoding system, would eliminate the need for customers to manually copyinformation from part bins to their worksheets. It would also eliminate the need forthe Data Entry Clerk to manually transfer information from these worksheets toMMS.

An estimated cost for a bar coding system given by Nohr & Associates is $9105.Nohr & Associates is a University affiliated business located in Ann Arborspecializing in inventory tracking. The following is a list of prices for componentsto implement a bar coding system:

J.trn Ouantitv PriceBar Code Readers...$700/unit 10 $7000Battery Rechargers...$80/uñit 5 $ 400Coding for Downloading...$9Ofhr 8 $ 720Bar Code Printing Software 1 $ 225Label to Print Bar Codes On...$16/1000 16000 $ 160Laser Printer to Print Bar Codes With.. .$560+ 1 $ 600

Total $9105

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Costs pertaining to the laser printer and labels for printing were received fromOffice Max. Costs pertaining to the bar code readers, battery rechargers, softwareand coding were received from Nohr & Associates (313-998-0190).

More sophisticated bar code readers can be purchased for approximately$1100/unit. The $1100 bar code reader would allow customers to enter work ordernumbers into the readers along with the information for the stock items they take.Further investigation is needed for these more elaborate readers.

Setting up a counter next to the door where customers would hand their worksheetsto the Data Entry Clerk to be checked for completeness. Besides confirming thelegibility of the worksheet, the Data Entry Clerk would be looking to see if suchinformation as work order number, account number, customer’s initials andbuilding name or department numonic is filled.

The Data Entry Clerk would only be checking the header of the worksheet(containing the above mentioned information) if the bar coding system wasimplemented along side the set-up-counter recommendation. AU other informationpertaining to stock leaving the Stockroom at that time would be recorded in the barcode readers. The Data Entry Clerk would need to download the information fromthe readers into the inventory tracking system.

If the bar coding system is not implemented, the counter by the door could alsoallow the Data Entry Clerk to ensure that all stock items leaving the Stockroom withthe customer at that time is logged on the worksheet. The Data Entry Clerk cannotcheck for the validity of the stock numbers on the worksheet but can see if a stocknumber is provided, if the quantity taken is correct and if the information is legible.Checking the quantity taken is important because the different units ofmeasurements can be confusing for the customer or can be overlooked.

Another possible cause of variance between the value of stock items in MMS andthe value of actual stock items from the fiscal year-end physical inventory count istheft. Figure 2 on the next page shows the variance for groups of stock items from1992-1993’s year-end. Note how the largest variance occurs in commonhousehold goods. By having a check out counter by the door, any occurrence oftheft should also decrease.

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Others50%

Contribution of Selected Products to Stock Variance

Figure 2: Stock Item Groups’ Variance for 1992-1993

Lamp

Battery Pack

7%

Carpenter

Hardware

6%

Hluminum

Fittings

6%

IBM Corporation

5%

Scrub Part

4%

• Training should be implemented for Stockkeepers to teach them how to determine areasonable maximum stock quantity to reorder based on other information availablein MMS pertaining to parts’ usage.

The above recommendations do not all need to be implemented. Some of therecommendations, however, do effect other recommendations, for example the bar codingsystem recommendation and the check out counter recommendations.

13%

Marquette Misc.

5%

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Action Plan

The implementation of the recommendations made on the previous section should beundertaken by the Stockroom workers and the Data Entry Clerk with support from theStockroom Business Manager. It is suggested that the Stockroom make its target acontinuous improvement of its operations. It is felt that the most important item effectingthe Stockroom is the lack of correct information in its systems. Most of the other problemsthey experience come as a result of this. A plan should be implemented for accomplishingthe Stockroom’s new target.

Target: Continuous Improvement of the Accuracy of the InventoryTracking Systems Data

The following steps are suggested as an appropriate action plan which could beimplemented in the Stockroom:

1. Distributing memorandums to or informing customers about the Stockroomprocesses and its search for improvement to make them more aware of situation inthe Stockroom.

2. Eliminating the problems caused by the downloading/uploading process in theStockroom. The following four step plan is recommended as the action plan:

a. Stop performing the download/upload procedure to transfer the databetween systems.

b. Manually input order receipts and placements from AREV into the standalone MMS until step c is implemented.

c. Use MMS on the network for entry of transactions so MMS and AREV caninteract more easily withOut conforming to the strict rules to shut down theserver. When this is implemented, the stand alone MMS should not be usedanymore.

d. Look for a new software package which can handle the tasks of both MMSandAREV.

The ultimate objective is to eliminate all the extra steps taken by the management ofthe Stockroom to re conciliate the information on both systems. These steps do notadd any value to the process. In order to achieve this, the reconciliation of theinformation on both systems would be to invest in a new software to incorporateboth tracking of stock and deliveries. However, since this will take some time toimplement, the previous steps are temporary solutions, which should help until theultimate objective can be executed.

3. Investing in the bar coding system. Contact Nohr & Associates at (313) 998-0190for information on implementing the system whose estimated costs were providedor to inquire about more sophisticated systems such as bar coding systems that willallow customer information to be entered as well as stock item information.

4. Designing the Stockroom so that a counter is close to the door where the customeris to submit worksheets for approval by the Data Entry Clerk before the customerleaves the Stockroom.

15

5. Teaching the Stockkeepers how to determine maximum quantities to reorder whenordering stock.

As with the recommendations, the above action plan is suggested as a guide toimplementing the recommendations and need not be strictly followed or implemented,though suggested.

16

U. OF HICHISN HOSPIThL

PART-Part Inv,file P)dd C)hanae D)eiete i)nouire4 or Ouit:lnuire by 1 4 5 6 8 9 18 19 26. or 27. Enter your selection1. Part . O)uit : 0126772. Descrition :3/8-COMPRESSION NUT3. Unit of fleas. :ECK4. Product Xey :LVFiT LVTGRY FITTINGS5. Nanufacturer BRS BRSSCRFT6. Nfc. Part :1345697. Delivery tice :08. Vendor :JSEX J.A. SEXPilJER INC.9. Vendor Part 4 13459 13.10. Order date :04/07/94 19.11. Stock on Hanth37 20.12. Stock on Ord.:0 21.13. Stock Coitd:0 22.14. Reorder Levei:i2 23.15. YTO Sold :5 24.16. Sale Price :4.55 25.17. Control : 45768 26.

Location :3LU412top. sanuTact:riReferencePhysical mv. :0Last cost :.538einnin oty:13

.t7I”.’

fla.stock tv:24Model 4 :10300 02/01

27. Size/tyosDelete cY/N: Return t cntinue,0 to END.:.

Appendix AScreen Print of a Maintenance Management System Record

ChanQe which 4, 0 to SAVE:

17

Appendix BScreen Print of MMS Record Before and After AREV Download

PART—Part Inv.fiie A)dd C)hane, D)elete, I)nouire or O)uit:ircnuire b 1, 4, 5, 6, 8, 9 18, 19, 26, or 27. Enter your selection :1. Part *, Oluit :2. Description :3 FT POWER CORD3. Unit of Mess. :EACH4. Product Key :WIRE WIRE, CORD5. Manufacturer :CAR CAROL6. Mf. Part 4 :045537. Delivery tiae :08. Vendor :MADELE MADISON9. Vendor Part 410. Order date :00100/0011. Stock on Hand:212. Stock on 3rd. :013. Stock Coitd:014. Reorder Level:615. YTD Sold :1216. Sale Price :42,1717. Control 4

ELECTRIC CON13. Location :YELIL219. Eap. anufact:FAST20. Reference21. rnyscaI mv. :024. Last cost :$,ii23. Bepinning qty:324. ‘ value :46.5125. Na.stock oty:122e. Model 427. Sizeltvpe

Delete Y!N: Return toChanoe 4hich 4, 0 to SAVE:

Screen print before AREV’s daily morning download to MMS.Note: Zero Stock On-Order quantity

inquire by 1, 4, 5, 6,1, Part 4, O)uit2. Descrition :33. Unit of Meas. :EACH4. Product Key :W1RE5. Manufacturer :CAR6. MfQ. Part 4 :045537. Delivery tiie3. Vendor9. Vendor Part 410. Orer date11. Stock on Hanthl4121 Stock on 3rd. :013. Stock Coaitd:014. Reorder Levei:15. YTD Sold16. Sale Price17. Control 4

Canae which * 0 to SAVE:

S. ?, 13, 19. 26, or 27. Enter your selection500015

FT POWER 36R0

WIRE. CORDCAROL

ELECTRIC CON13. Location :YEL1L219. Ego. iTanu1act:FAST20. Reference21. Physical mv. :022. Last cost :42.1023. Dennino oty :324, a value :46.5125. Ma.stock ty:1226. Model 427. Sizs/tye

Delete (Y;N): Return to continue,0 to END,:.

continue,0 to END.:.

PART-Part Inv.file )od, C)hanQe, D)eiete, i)nnulre, or O)ut;

:0:NADELE MADISON

04112/94

:12:42.16:45813

Screen print after AREV’s daily morning download to MMS.Note: Increase in Stock On-Hand quantity even though no orders were on record earlier.

18

Appendix CFlow Process Diagrams Showing Extra Work

The diagrams flow charted here are present processes of the Stockroom. Portions of theseflow charts are boxed with a dotted line. These boxed portions of the diagrams indicateareas of extra work for the Stockroom Stockkeepers, Data Entry Clerk and Hospital OrderSpecialists (Buyers).

These flow charts can also be found on a DOS based Stockroom disk under the ‘boxed’directory. This sub directory contains flow charts showing areas of extra work due to poordata integrity in the present Stockroom processes and flow charts showing areas ofelimination when the new computer system performing functions of both the inventorytracking and purchasing systems is implemented (appendix E).

19

)

D

D.Jewojsn3L1-

--

mU) çk) ch

<dcustomerNDIdcustomeretiquantity of part

part?needed?

No —Yes

I Customer completes I (not in bin) on worksheet forCustomer checks column 2

corresponding part.[worksheet with quantity taken.

<stomerteNO

indicate the amount of ps

Customer checks column 3(total quantity required) to

part in bin?needed.

las

Yes

Customer checks column 1(last item) on worksheet for j

corresponding part. I

Yes—custocner want more4’

No

Customer drops worksheet Fott at Data Ently Clerkswindow.

‘ii,/See 18. lnvent

Tracking System Process.

Customer leaves.

1\

Stop. \

I Kevin MaCKillopi University of Michigan Hospital! 4/24/1994120:291 a:\.boxed\bl 7.acIl I page 5 of 6j

Was the # ot parts iness Cart the quart

<tpartsne?>

Customer takes remainIngparts in bin.

No 4,Customer checks colwnn 1 toindicate he took the last item

in the bin.

Customer Completes column 3(total quansty required) on

worksheet br correspardingpart.

“P

Customer conipletea quantitytaken column on worksheet

for coffesponding part.

Kevin MacKillop! University of Michigan Hospital! 4/24/1994! 20:29! a:\boxecl\bl7çj page 6 of 6j

L

InOMOOlS.o

cm

senssiPEdsvwi

Type en a 6 digit work ordernumber from Maintenance

worksheets and pressENTER.

[9

Type in the quantity issued.

Ta the qtsanttty Noissued x quantity on

hand?

Yes

---II

IAretheresny I

sane quantity on han more pact non thesheet?

4, Yes

I Mark worksheet withdttference between quantity Enter next Tyve ‘ tot ct.lrr in past #

issued and quantity on hand, field.

______________________________________________________________________________

I

_______________________________________________________________________________

I 4, I 1’tt more transactions are on I

I the worksheet, enter tern and Cursor witt drop to bottom ot

Iplace the worksheet aside. I

I

___ ___

I I ,°Jterailtrsxtsactionsonwortcsiseet

I I have stocidreeper do a physicat Type 0’ (zero) to saveI completed, make screen pnnt and II inventory count of tire part amount I intonosatson asued.

I I

When screen pnnt is retumedfrom the stoctdceeper,

compare the inventory on the Computer automatically pnntaout report ot issued itema.screen print in the Inventory

count trom the atockkeeper.

1’ 1’Check receipts. Type 0’ tot OtJtT.

a been received todsa>flo

Yes

conipiete transaction

\

Place stock count, differenceand anythIng on-order in

tomonow.screen 5 ass total In heIdi 2.

Receive on screen 10 stockcount and difference amount

_____

Li(Kevin MacKillopi University of Michigan Hospitail 4/24/1994120:301 a:\boxed\b21 .acIl page 3 of 41

n0

24. Re-Ordering Stock Items

___

/st/

\stocictceecer dtacovers/empty bIn.

1CtceclcMMS.

Yes

_________________

—C” performing the Nr Yes

__

1Ii 7

I Stockkeeper looks in MMS toI [ dmazua-ord my. I

0 a blsnket order

_______________

Isthere

vendor for thispart?

Buyer or Stocldceeper calls Buyer or Stocickeeper logsvendor and geta pricing for order in AFIEV end pulls I

pact and delIvery date. - control C from

-J

<thenNO —

— Buyer or Stoclckeeper cells to an Iorder to the vendor and aaks forpnca and delivery date. Buyer or Ithan $500.00?

Stocldceeper gives vendorcontrol e and purcfcase order C. i:r

__ _

Buyer or StocldceeperBuyer or Stoclclceeper 1095Buyer or Stocidreeper calls I

accesses AMEV to Input the Iorder In AREV end pullscontrole from APEV. Items ordered.

cii

_

<evin Mackillopi University of Michigan Hospitall 4/24/1994120:301 a:\boxed\b24.acIj — page 1 of 4I

A

esuqojndSitfiJOJAzpuenbiepjoesnwetaeWwJetePosiope4etJ2OpuesepnuvnbutoqezAtew

)

fl

27. BioMedical Engineering Customer

/ staa /1

Customer srnves atSloMedicii EngineedngStockroom or seteiSte

stations.

Notilt after 3:30 pm?

Yes

Gets BioMedical Engrteeñngbuyer or technician to give

access to BioMedicalStockroom or sateitite

stations.

Customer picks up pinkworksheet near BtoMedicel

Stockroom or sateiSteentrance.

Customer completesworksheet flesder with work

order number and otherhfonnstlon.

Doesthees customer know

where the pert

Ask BioMedical Engineerkigbuyer for essistance.

[kevin Mackillopi University of Michigan Hospitall 4/24/1994120:301 a:\boxed\b27.aclI I page 1 of 41

smdpuBueweiflS8GW

jOJUfls,j8dijedjoGQWflU)POWIThMBOI4B)iOM

seeidwoJBWoSflD

-_+

I

Did customer No rustomer checks column 2get tile quantity of part (not in bin) on worksheet for

needed? corresponding part.

Yes

Was the 5 eCustomer completes No parts In the bin teas

worksheet with quantity taken. than the quantityneeded?

Yes

Dtdtfle

Customer checks column I(last item) on worksheet for

corresponding part.

Does thecustomer need mor

BioMedical parts?

No

BioMedical Engineering buyerbegins the re-order process

before receiving a screen print ofparts that need to be re-ordered

from the Data Entry Clerk.

Customer leaves.

[1

Customer kitomis BloMedicslEnglneenng buyer of

stockout.

0 Customer takes remainingparts In bin.

Customer checks column I(last tern) to indicate they

took the last Item in the binfor corresponding part.

Customer completes column 3(total quantity require on

worksheet for correspondingperk

Customer completes quantitytaken column on worksheet

br corresponding part.

Customer drops offworksheet to the Office

Assistant

OffIce Assistant givesworksheets to Data Entry

Clerk.

Kevin MacKillopI University of MichiQan Hospitall 4/24/1 994 2O:3O a:\boxed\b27.acl page 3of4

nrT

h

Appendix DScreen Print of Maximum Stock Quantity vs. Quantity Ordered

Note: In the screen print below the maximum stock quantity for this stock item is five.The year-to-date sold quantity is also 5. This print out was made in April 1994. That’stwo months before the fiscal year end. Since the movement of this part appears to be slow(year-to-date sold quantity), a maximum stock quantity for reordering of five may be toohigh.

U. OF NICHIBAN HOSPITAL

PART—Part Inv.fileincuire by 1, 41. Part 4, Quit2. Description3. Unit of Neas.4. Product Key5. Nanufacturer6. ‘tfg. Part 47. Delivery tise :0B. Vendor7. Vendor Part 4i. order date11. Stock on Hand:212. Stock on Ord. :013. Stock Coitd:014. Reorder Level:215. YTD Sold :5lé.Saie Price :415.5417. Control 4 40135

20. Reference :2334—0225SS21. Physical mv. :022. Last cost :414.1623. Beoinnino cty:324. value :4•6.6225. Na>.stock qtv:526. Nodel 4 :13333 /9

27. SizeityeDelete IY/N): Return to continue.0 to END,:.

A)dd, C)hanae, D)elete. iinouire, or Oluit:5 6, 8, 9, 15, 19, 26, or 27. Enter your selection: 010522:3/4’THRD SWING, CK VAVLE N/TEFLON SEAT:EACH:CHKVLV CHECK VALVE:GR1N GRINNELL

:WOLSUP WOLVERINE SUPPLY:3310—3/4 18. Location :SLUIF3:06103/93 19. Eop. aanufact:FAST

Chance which 4, 0 to SAVE:

20

Appendix EAreas of Processes For Elimination With Implementation of

Recommendation

The diagrams flow charted here are present processes of the Stockroom. Portions of theseflow charts or all of a process may be eliminated with the implementation of the newcomputer system performing functions of both inventory tracking and purchasing. Theportions of these flow charts to be eliminated are boxed with a dotted line. Process Flow#2 (Stock On Order and Receipts for MMS) can be completely eliminated.

These flow charts can also be found on a DOS based Stockroom disk under the ‘boxed’directory. Saved in this sub directory are flow charts showing areas for elimination whenthe new computer system performing the functions of both inventory tracking andpurchasing is implemented as well as flow charts that show extra work in the presentStockroom processes due to poor data integrity (appendix C).

21

2. Stock On Order and Receipts for MMS

This whole process would be eliminated when incorporatfng MMS and AREVinto one software

/ St]

Note: Alt activities shown areperformed by Data EntryCleric, unless otherwise

stated.

At C: prompt type STOC1C.

Automatically copies thestock placed on order the

previous day from AF1EV toData Entry Clerks computer.

1Check that tiles copied do riot

have a tile size of 0 bytes.

Print out copy of screencontaining byte size of file

copied.

Enter operator number andpassword at prompts to get

into MMS.

Enter #35 (other programs)from main menu.

‘1rEnter #7 (stock on order)

from other programs menu.

Type the word CONTtNUE’ inall caoital lettera at prompL

Kevin MacKiilopl University of Michigan Hospitall 4/24/1 994 2O:28 a:\boxed\b2.aCj page 1_pfj

Enter the size of the DOS fileSOO.SVO in bytes fromprevious screen print.

1Press ENTER at prompt.

Type ‘ to proceed atprompt.

Press ENTER at prompt.

.1All nfom,abon copied trom

AREV earlier goes intostand-atone MMS.

When tile process is finishedgo back to the main menu and

type #15 to exit to DOS terMMS

Type In CDV to retum to C:prompt.

Type RECEtPTS at prompt.

Automatically copies tileorders received the previousday from AREV to Data Entry

Clerics computer.

1Check that files copied do not

have a file size 010 bytes.

Print out copy of screencontaining byte size ori file

coped.

Kevin MacKillopi University of Michigan Hospital! 4/24/1994! 20:281 a:\boxecl\b2.acl I I page 2 of 31

Enter operator number andpassword at prompt to get

into MMS.

Enter #35 (other programs)from main menu.

Enter #8(receipta) from otherprograms menu.

Type the word CON11NUE’ Inall capital letters at prompt.

1Enter the size of the DOS file

REC.SVO in bytes tramprenous sceerl pant.

•1r

Press ENTER at prompt.

Type ‘i” to proceed atprompt.

Press ENTER at prompt.

All information copied fromAREV earfier goes into

stand-alone MMS.

‘ir

sop. \

Kevin MacKiNopi University of Michigan Hospital 4/2411994120:281 a:\boxed\b2.acl I pagegfj

11. Post Transactions

Stop undt notified byBlomedat Engineering andMaintenance that wortc ordera

L1) L.a) b)

Log back Into netwodc.

Saiect #34 (posttransactions) from main menu.

____

1Type 0N11NUE’ at prompt.

‘1,Once transactions are postedselect #15 (exit to DOS) from

menu.

MthepmrnptN:PART>tpe‘TRXCOPY’. This transfersinformation frcm the network

corrects wrong Information.

L__

Type PAFfTS to return tostand atone MMS.

Stoc.

IKevin MacKUlopi Universfty of Mlchiçan Hospita 4/24/1994120:291 a:boxed’ib1 1 .acII I page 2 of 21

16. Non Stock Order.

/

Customer needs a non stockpart

Customer fills out a non stockitorn request with an account

number.

Customer brings request totheir dopartnienrs buyer.

Buyer sorts requests by theirpnorlty.

A

Buyer checks the part is a nonstock item. Look upon MMS.

Is therea blanket order Yesvendorfertitis

part?

Yes Is the part lessBuyer logs order in AREV

than$500.00?

and pulls control # from

No

Buyer calls in an order to theBuyer calls vendor and gets Buyer calls vendor and gets vendor and asks for poce andpricing for part and delivery pncthg tor part and delivery delivery date. Buyer gives vendor

date. dale. control C from ABEV and purchaseorder C from the blanket order.

.1

___

Buyer logs order in AEVarid pulls control I from Buyer cats Purchasing.

AREV.

-J

_____ __________________[i

ievin MàcKiIIopj Unwersity of Michigan Hospitall 4/24/1 994j 2O:29 a:\boxed\bl 6.acif page 1 of 31

Buyer plves PurchasingBuyer accesses OSC. information for the purchase

order over the phone.

Buyer enters a purchase orderPUrh enters the

ntom,ahon recerved Intofor the part.

A pnnt out of the purchase Purchasing gives Buyerorder is made, purchase order number.

.1Buyer logs order into AREV

and pulls control # fromAREV.

Buyer calls in order with Buyer fases order to vendorpurchase orderS and control with purchase order U and

S. control S.

Buyer accesses AREV toinput the items ordered.

athwQ

Print out completedreqursition from AREV.

Get requisition signed byStockroom Busness

Manager.

SIgned requisition sent toPurchasing.

Kevin MacKiflopi Unjversjt’ of Michigan HosptaIl 4/24/1994120:291 a:\boxecfb1 6.actl page 2 of 31

24. Re-Ordering Stock Items

/ata] 11

Slockkeeper discoversempty bin.

‘1r

Check MMS.

Sloctdteeper looks in MMS tofind max re-order quantity.

Is therea blanket ordervendor for this

part?

pertorndngtheYes

- -

1

Buyer or Stocldreeper logsorder in ARE’? and pulls

control Strom ARE’?.

-j

Buyer or Slockkeeper callsPurchasing.

Buyer or Sloclckeeper calls in anorder to the vendor and asks forpnce and defivery date. Buyer or

Sfockkeeper gives vendorcontrol S and purchase order S.

Buyer or Slockkeeperaccesses ARE’? to Input the

items ordered.

(

Buyer or Stocldreeper callsvendor and gets pricing for

part and delivery data.

I

I L -

________

No

r

Buyer or Stockkeeper logsorder In ARE’? and pulls

control S from ARE’?. 1r 4

(01 (p-.1

[kAn MacKillopi University of Michigan Hospitall 4/24/1994121:181 a:\boxed\b24.aCII I page 1 of 4t

\ Buyer receives screen

\ prtntofpartlterntobere-Ordered tram Data

Entry Clerk.

BuyercecksthatthepartblnIsempty.

Htheè::

_

Stop. \ check MMS.

Buyer looks at ‘Year to Date lathe re-order eSold’ torthe part, level reached?

Look at ‘Max Re-orderquanttty’ tor the Do not order.

Analyze both quantities andother factors to determtne themax re-order quantity tar this

purchase.

Change max re-order quantityIn MMS br the part to themax re-order quantity just

determined.

Wae there anote or photocopy of a

worksheet requesting a specificorder quentitytroma

KevinMacKIIIopj University of Michigan Hospitall 4/24/1 994! 21:181 a:\boxed\b24,acl [page 2 of 4!

_ _ _

Jorder

f

No

________

Buyer or Stockkoeper gives

the Yes Purchasing 1sfoalion for the gr

________________ ________________

eater than $500 andStockkeeper maid‘%.. Mth blanket orderpurchase order over tIleorder?

phone.

Print out completed 1Buyer logs order Into AIREV Stocldceeper logs order Into Purchasing enters the 1there, number from AAEV. DSC.

and pulls control number from AREV and pulls control intomlalion received into]requisitIon from AREv.

j

Buyer accesses DSC.

(Stoclckeer

)Purchaang ves Buyer or

Stcckr Business ManagerSlockkeeper purchase order

number.

Buyer or StockkeeperSigned requisition sent toBuyer enters purchase order \ purchase

Ask Buyer to access osc/ \Stccesper calls

for

\ order numtierrcasing /

accesses AR to input meorder. Purchssing

___ ___

4r

___

Buyer puts purchaseBuyer accesses DSC and Stocidweper gives Purchasing

Obtain control number fromenters a purchase order for infonnalton for the purchase

number from DSC. AFtEV.the pait. order over the phone.

Buyer or Stocfdeeper calls In I Purchasing enters the Buyer or Stcckkeeper calls in

purchase order number.and control C. DSC. and control C.

order with purchase orderBuyer gives Stocirkeeper

information received into order with purchase Order C

Purchasing gives Stockkeeperlpurchase order number.

[kevin MaàKllIopl University of MichKan Hospttall 412411994121:181 a:\boxed’b24.aclI rae 3 of 41

n

Appendix F

Process Flow Diagrams

14. Add New Item into MMS

[start

/

Note: The steps otthlsprocess are performed by the

Data Entry Cterfc unlessottierwise indicated.

Receive Input sliest.

Select#1(vendorMianutacturer fife)

from main menu.

Enter 1’ for INOUIFtE tocheck to see it the new vendorhas been assigned a vendor

code.

Type in vendor code atprompt.

endorcodeeS_

the system?

No

Enter A’ for ADD.Select #2 (product key) from

main menu.

___________

1Enter 1 for INQUIRE to

Enter all vendor information check to see If the productfrom input sheet key on tIre input sheet erasts.

Press ‘0’ (zero) to save Type in product key atInformation, prompt

_

ii

_

I Kevin MacKillopi University of Michigan Hospita 4/24/1 994t 22:071 a:\1 4addstk.accj page ij

Enter to et to melnmenu. in the system

________

Yes

Select 55 (parts Inventory- Enter remaining Info

file) from main menu. r - tTTladOfl.

Enter ‘A tor ADD. Enter ‘A’ for ADD.

.1

___

Add new stock number, press Enter product key InformationENTER. trom input sheet.

Cursor will move to Press ‘ (zero) to savedeactiplion. Information.

___

1Type in deectiption. press Enter 9’ to eiot to n

ENTER. menu.

Type in each field trom Inputsheet, press ENTER.

‘1rPrtnt a copy of the screen and

attach copy to input sheet.

Type In 0’ (zero), then pressENTER to save addition.

Type ‘ to QUIT and return tothe main menu.

emoreeS

nput sheels?

No

IKevin MackilloóFUniversitv of Michigan Hospita 4/2411994122:071 a:\l4addstk.acf I page 2 of 31

n

15. MMS Information Changes

/ /Note: The steps of this

process are performed by theData Entry Cleric, unless

otherwise indicated.

‘JrData Entry Clerk receives

change sheet or screen printwith indicated changes from

buyers.

No lsitaproductkeychange?

Yes

YesIs the time after the

month-end but before anytransactions?

No

Sort change sheets by Wait until after month-end andVENDORMANIJFACTURER before any transactions in

name. order to minimize variance.

Select#1 Arettere y $(vendorlmanufacturar file) more change sheets or

from main menu of MUS. screen prints?

No

Enter r for iNQUIRE tocheck the vendor code.

‘JrType in vendor name. The

correct vendor code willappear on the screen.

Does the vendor

Yesthe code on the change sheet or

Kevin Mackillop) University of Michigan Hospitall 4/24/1994! 22:07! a:\1 5mmschg.aclj Fi of 3!

Return change sheet or screeprint to buyer (originator).

Are theremore change sheets Vee

or screen rnts to

Select #5 (parts Inventorytile) from main menu.

Enter ‘C for CHANGE.

Enter stock number.

4’,Compare change sheet

intormatlon againstinformation on screen.

At change which # prompt,enter field I to be changed.NOTE. Go not change Stock

Cn.Hand, Sale Price...

After all changes arecomplete, type in 0 (zero)and press ENTER to save

changes.

Stamp each change sheet orscreen print to indicatechanges are complete.

print

Return completed andstamped change sheets orscreen prints to the buyer

(originator).

I Kevin MacKiilopl University of Michigan Hospitail 4/24/1994122:071 a:\1 5mmschg.acll I page 2 of 31

16. Non Stock Order.

/aft

/

Customer- needs a non stockpart

Customer fills out a non stockItem request with en account

number.

Customer brings request totheir departments buyer.

Buyer sorts requests by theirpriority.

Buyerchecks the part is anonstock Item. Look upon MMS.

Is starea blanket order Yesvendor tor this

part?

No

Yes lathe rtlessBuyertogsorderinAflEv

than $5QQand pulls control * from

AREV.

No

Buyer calls in an order to the

Buyer calls vendor and gels Buyer calls vendor and gets vendor and asks for prIce and

pndng for part and delivery pricing for-part and delivery delivery date. Buyer gIves vendor

date. date, control C from AREV and purchaseorder * from the blanket order.

‘rip

___

Buyer logs or-dec In AFIEVand pulls control * from Buyer calls Purchasing.

AMEV.

[jvin Mackillopi University of Michigan Hospitall 4/24/1 994 22:081 a:\1 6nonstk.aCII page ff1i

Buyer ves PurchasingBuyer accesses DSC. Information br the purchase

order over the phone.

Purchasing enters theBuyer enters a purchase order Information received Into

or the part. 05G.

Ir

___

A printout of the purchase Purchasing gives Buyerorder Is made, purchase order number.

Buyer logs order Into AJRBVand pulls control from

APEV.

Can the Buyer Ye

_____________

lax order tov:dor?

Buyer case In order with Buyer taxes order to vendor

purchase order S and control with purchase order I andU. contrOlS.

Buyer accesses Aj:1EV toInput the items ordered.

Print out completedrequisition from AREV.

•1Get requisition signed by

Stockroom BusinessManager.

Signed requisition sent toPurchasing.

_________[1

rof Michigan Nospitail 4/24/1994122:081 a:\1 6nonstk.adl page 2 of 31

Appendix FCurrent Process Flow Diagrams

The diagrams found here are the present processes of the Stockroom.

In the flow charts, the following abbreviations and vocabulary are used:

MMS = Maintenance Management System (Software)

AREV = Advanced Revelations (Software)

# = number

BioMed = BioMedical = BioMedical Engineering = BioMedical EngineeringDepartment

Buyer = Hospital Order Specialist

Customer = BioMedical Engineering Technician = Maintenance Worker =

Alteration Worker

Explanations are provided at the top of each flow chart indicating who is performing thefunctions listed in the flow chart except when otherwise indicated in the flow chart. Belowis a list of who uses which computer system:

• All computer work with the Maintenance Management System is performed bythe Data Entry Clerk.

• All computer entry in Advanced Revelations is performed by Hospital OrderSpecialists or Stockkeepers.

• Customers, Stockkeepers and Hospital Order Specialists may access thenetwork version of the Maintenance Management System for view purposesonly.

The flow charts found here can also be found on a DOS based Stockroom disk. All chartsare named by number followed by a brief name explaining the contents of the process.They are saved in the disk’s main directory.

22

Stockroom Processes.

Order report for previousSfocldceeper pnnts Daily

Report tiled. Stop.clay.

Date Received report for‘ Report flle Stop.previous day.

See 19. Stockroompackages received dayStart of Work Day [ Stockkeepec delivers

Stop.before.

from network for AR. and Recels for UM{Stop.Data Entry Cleric downloads 2. Stock On Order

See 3 Baclcup—MMSDaity Activity

Data Entry Clerk uploads toe to Network Stop

network for MMS.

orders for the day.See Morning Activities 10

Stop.print report.

End of Work Day

st stoclckeeper compiles

On-Stock buyer compilesordersfortheday. [—II

SeeMomingAclivitiesto { Stop.print report.

See 13. PrintStop.

Transactions Pile

See 12. ClearTransactions and Stack Stop.

Overflow Process

‘1%1. Post Transactions

Process.Stop.

Michigan Hospitalt 4/2411 994 20:311 a:\OaIiacI j page 1 of 2

Relationship Between Processes

Iang

tTrsaons

-thEnd

&ber

/‘Zftckitem’’\[/4witem\%)

Processes:

/

ç_<’Csr1 nventoty

4. Returns fromMaintenance. Biomedical

Engrneering and Alterations

_________

[]Kevin MacKilIopI University of Michigan Hospitall 4/24/1 994 20:32 I a:\Orelate.aclj [oe 1 of 2!

1. Part Acquisition.

/1

Part needed by customer.

NoIs part a stock item?

Yes

Is fl partconsidered a BioMedical Yes

ess. Engineering part?

_____

No

___

Customer goes tome

\st.

\I Customer goes to the

EloMedical EngineenngStockroom or BIoMedical I

Engineering SatetstePaditiles Stockroom.

Stockroom.

1

__

cBIoMedi(Engineering StockroomN’Customer

ICuicomer Process.

Ikevin MacKlilopi University of Michigan Hospltall 4/24/1994120:551 a:\1 partacg.aciI I page 1 of 1

2. Stock On Order and Receipts for MMS

/ Start. /Note: ftJl actficifies Shown StC

performed by Data EntryCleric, unless otherwise

stated.

At C: prompt type STOCt.

Automatically copies thestock placed on order the

previous day from AREV toData Entry Cleric’s computer.

Check that files copied do nothave a file size of 0 bytes.

Print Out copy of screencontaining byte size of file

copied.

Enter operator number andpassword at prompts to get

into MMS.

Enter *3.5 (other programs)from main menu.

Enter *7 (stock on order)from Other programs menu.

1Type the word CON19NU tn

alt capital letters at prompt

<evin MäcKilIopI UriiversitV of Michigan HospitaI 4/24/1 994 21 :26j a:’2soo&rec.aclj page 1 of 3

Enter the size of the DOS fileSOO.SVO in bytes fromprevious screen print.

1Press ENTER at prompt.

Type Y to proceed atprompt.

Press ENTER at prompt.

All information copied fromAREV earlier goes into

stand-alone MMS.

When the process is finishedo back to the main menu and

type #15 to exit to DOS torMMS.

Type in CDV to retum to C:prompt

Type RECEIPTS at prompt.

Automatically copies theorders recsived the previousday 1mm AREV to Data Entry

Clerks computer.

Check that fiTes copied do nothave a fife size of 0 bytes.

1Print Out copy of screen

containing byte size of filecopied.

KeviñMacKitIo University of Michigan Hospital! 4/24/1994121:261 a:\2soo&rec.acjj I page, 2 of 3i

Enter operator number andpassword at prompt to get

into UMS.

Enter #35 (other programs)from main menu.

Enter #S(recelpts) from otherprograms menu.

1Type the word CON11NtJE in

all capital letters at prompt.

Enter the aize of the DOS fileREC.SVO in bytes fromprevious screen pent.

Press ENTER at prompt.

Type Y to proceed atprompt.

Press ENTER at prompt.

All information copied fromAREV earlIer goes into

stand-alone MMS.

1Stop. \

[kevin MacKillopi University of MicNgan Hospitall 4/24/1994121:261 a:’2soo&rec.acl1 ge 3 of 31

3. Backup--MMS Stand-Alone to Network

/Note: The steps of this

process are peilonsied by theData Ently Clerk. unless

otherw,se Indicated.

1Note: Process used to

back.up UMS Sland-Pjoneto Local Area Network.

4rReboot computer. Goto C:

prompt.

1Call Paula (v.110 controls theserver) 3-5560 or page 9149to stop the server and create

file for backup.

.1AtC:\prompttpe

ACKrruP..

Backup process lastsapproramatety 10 minuteS.

When process finished aCome Back Soon message is

displayed.

Press the RESET button toreboot the computer In orderto continue with other work.

\_______

jKevin MacKIlloI University of Michigan HoSpitall 4/2411 994 21 :28 a:\3backup.actt Ei of 11

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)

D

5. Yearly Inventory Count.

/ /Note: The steps of this

process are performed by theStockroom Business

Manager, unless otiretwiseIndicated.

Meet with RIGIS InventoryCo., confirm the date for the

Inventory.

1Verify locations, clean up

areas.

.1Contact accounting with

inventory date.

Receive programmodifications from HVHC

Foreman.

Recheck, ‘not founds’ ofInventory (Place in free index

1).

1Begin loading arid testing ofMUS program modifications.

Walk through satellite areas.

Confirm coverage withBioMedical Manager.

a

[Kevin MacKillopI University of Michigan Hospitatl 4/24/1994122:061 a:\5invct.aclj [ge 1 of 4!

Set up procedure to inventorysphygmo pests.

Run testing of Inventoryprocedures on stand atone.

1Begin Identification *non-inventory items

(Identified by location with NIsuffix).

Contact secuiity regardingcard key shut down for

Inventory weekend.

Make sure Maintenance withave someone present when

addressograph parts areinventoned.

Contact Alterations withinventory date of their stock

and arrange for them to havesomeone assist.

Inform Alterations afterinventory to hold transaction

Slips Laltil July 2nd.

Stop all stock puichasea.

Buyers concentrate oninvestigation of outstanding

invoices for account 200103.

Target non-inventory.

Set up four (4) rollIng cartsfor Inventory weekend to

Inventory cabinet.

Ikevin Macklilopi University of Michigan Hospitai 4124/1994) 22:061 a:\5invct.acIj pace 2 of 4

Inventory at buildingmaterials.

Back-up MMS to network.

Hold all receives Into UMS.

Get dollar figure from buyeron expenditures from stores.

MI transaction slips to beturned in by Blomed and

Maintenance are due no laterthan noon.

Do month end on both standalone and neiworit.

Clear physical inventory field.

,Ir

Run inventory by location andseparate, enter on sign Out

logs for inventory company.

1.Inventory beans at 800am.

satellite areas to becompleted first

Verify all sheets receivedfrom RIGIS personnel before

they ace signed off.

1Complete inventory data

entry.

Kevin MacKiflop) University of Michigan Hospitail 4/24/1994122:061 a:\5invctaclj -

page 3 gf4j

fl

6. New Stock Item Acquisition.

Stan. /1

Person identifIes new partthey need.

Person flits out a new itemrequest form.

Person enters an estimatemonthly usage in the form.

Buyer orders a quansty of thepart based on their estimated

usage.

1Buyer sends note to Data

Entry Cleric to input the item into MMS.

1New Item

into MMS Process.

.1Item ordered is received in the

Stockroom.

1Stoclckeeper finds a location

for new parts bin.

Stocfdceeper gives locationfor new part to Data EntryClerk for entry into MMS.

Kevin MacKillopi Uriversty of Michigan Hospitall 4/24/1994121:371 a:\6newstk.acl I I page 1 of 21

ILJOLebBdpwrn1olu!z\:eI?o;P66L./P/PWHUSOHuuo!qu!hnljolqIsJaMufl°°II!)P1Nu!Ae)jI

e6ueqoui)IOOTSL

,1

*Z)

U

8. Mark Stock Numbers for Deletion

Start.

Note: The steps in thisprocess are performed by

the Data Entry Cleric unlessotherwise indicated:

Customer notifiesStockroom of equipment Items that are not being

change causing used to be deleted.obsolete parts.

Receive list of parts to deletefrom Stockroom Business

If not MMS. log into MMS.

Type C for change. Do notdelete at this time.

Enter the max stocW field asfield to be changed.

Change max stock value toO(zero).

Enter the node4 ti field asfield to be changed.

iKevin MacKiIIop University of Michigan Hospitall 4/24/1 994 21 :4O a:\8markdeI.ac page 1 of 3j

ça)

Change the model # tODelete.

Change re-order quantity toO(zero).

Make equipment manufactureiinfo blank.

Save changes.

1MaIre a screen print for the

part.

Add this merit-deleted part asa new part.

In main menu, select #5 (partsinventoty tile).

Enter A for add.

Enter all the information fromthe screen print made of thepart to be deleted, except the

part U and quantityinformation.

For the part #, enter 0’

followed by the original partnumber.

After addition is complete,type ‘0 (zero) and press

ENTER to save the addition.

Mi _

Kevin MacKillopi University of Michigan Hospitall 4/24/1994121:401 a:\8markdeIacti E2 of 31

(c) d e

marked-deleted parts toes

Adjust inventory on hand too(zero) in part number without

the 0. Remember originel onhand quentity.

in part number preceded byV. adjust inventory up to

retlect the quantity removedtrom the part number without

the ‘0.

1See 22. Stock

Adjustment Process.

1Welt tor dsy sher month endprocess in order to delete (9.Delete Stock Number From

System Proceesj.

4,Stop. \

jkevin Mackillopi tjriiver5itv of Michigan Hospitali 4/2411994421:401 a:\8markdei.acII I page 3 of 31

9. Delete Stock Number From System

/ Start /Note: The steps In liii.

process are performed by theData Entry Clerk, unless

ottierwfas indIcated

•1If not In MMS. tog Into MMS.

Look for model numbers thatsay Delete.

Obtain permission of theStockroom Suslness Manager

to delete the stock numberfrom the system.

Type D’ for delete.

Select #5 (pails inventory

file).

Cursor will drop to part #field.

Type In the part #10 bedeleted and press ENTER.

1c _

Kevin MacKillopi University of Michigan Hospitalj 4/24/1994122:071 a:\9delpt.acl I page 1 of 2j

La) [cJ

Cursor will drop to bottom ofscreen.

Type “Y’ for yes, delete tIllspart number.

Part # deleted from system.

Cursor returns to pert * field.

Type Q’forQUrrin perlefield.

Type O for QUIT.

Return to main menu.

\ Stuø.\

KevinMacKillopl University of Mtchiqan Hospitalf 4/24/1994122:071 a:\9deIpt.aclI [page 2 of 21

pu3-Ljjuog0I.

U

0

0

11. Post Transactions

Start

Note: The steps of thisprocess are performed by the

Data Entry Cleric, unlessotheiese indicated.

No lsltthe8thwofldng day of the

month?

Yes

Are workorders being dosed

by Biomedical Engineering orMaintenance?

Yes

Stop until notified by

Run Backup procedure.Biomedical Engineering andMaintenance that work orders

are closed.

Reboot computer afterBackup procedure.

1Type PART at prompt from

menu to log into network.

Log into MUS with operatorId and password.

Type #15 (exit to DOS).

Type liMP to run program topost transactions.

Kevin MacKiflopl IJniversitv of Michigan Hospitall 4/24/1 994 22:281 a:\1 1 pstran.acjj I page 1 of 21

At the prompt N:PART> tpe‘TAXCOPY’. This transfersinformation from the network

beck to the standalone MMS andcorrects wrong information.

12. Clear Transactions or Stack Overflow

/Note: The steps of this

process are performed by theData Entry Cleric, unless

otherwise Incated.

Press reset

1Log back into system.

Enter password to exit

1Wait for commend line at top

o screen.

1Type F’forPtLER and press

ENTER.

Type T for TRANSFEI:f andpress ENTER.

•1Type ‘TRXTRX.SCR.

PPGM2S’ and press ENTER.

iKevin Mackfllopi University of Michigan Hospital! 4/24/1994122:28! a:\1 2ovrflw.aci [page 1 of 3!

Type Y’ for YES and pressENTER.

TypeforOUrrid pressENTER.

Type for EXECUTE andpress ENTER.

1Type PRELUD.

1Log back Into system.

,1rit not in MUS. log into MMS.

Sefect #12 (deer transaction)from main menu.

1Press ENTER when asked for

starting date trom when toclear transactions.

Enter an end date when askedfor an end date to clear

transactions to. Keep in mind.a minimum of 30 days rOust be

kepL

Press ENTER after entenngend date.

transacttOfl& (May take aUnight to dear all transactions somay halt clearing process at anytime If wish to dear only part ofthe transactions at this time).

[Kevin MacKilloplUniversitv of Michigan Hospital! 4/24/1 9941 22:281 a:\1 2ovrflw.ac!j [page 2 ofj

Yes Purchasing intonnadon for the eater than $500 and not

________

1

purcha

Yes

Stockkeeper maId

Buyer or Stocldceeper gives teorder

Ce Order over the with blanket orderorder?phone. vendor?

and pulls control number from I AREV and pulls control InformatIon received IntoPrint Out completed

Buyer logs order into AREV I Stockkeeper logs order Into1 Purchasing enters the

there. [ number from AREV.reqwsltion from AREV.

Stockkeeper purchase ordernumber.

__________________

can:)Bur

Stockroom Buess Manager

Buyer enters purchase order \ to cbtain purcllaee“AsIc Buyer to access

DSC/

\Socieepe calls

Buyer or oclciceeper

{

signec requisitIon sent toPurchasing.

order.for the

\ onter numberPurchasing

accesses AREV to input the

1’

___ ___ ___

Buyer accesses DSC and Stocldreeper gives Purctiaswlgcontrol number fromBuyer pulls purchase order

enters a purchase order for lntom,adon for the purchasenumber trom OSC.

the part. order over the phone.

I I

Buyer or Stocldceeper calta in Buyer gives Stocictreeper Purbliasin: enters the Buyer or Stockkeeper calls inlnfom,atlon received into I order with purchase order *

arid control C.orderwrth purchase order#

purchase order number

[ and control C.

1Purchasing gives Stockkeepj

purchase order number.

[page 3 of 4)

C)

a?> I

0

nfl

25. Pre-Customer

Note: Stockroom in this process refers toboth the Facilities Stockroom and the

BioMedical Stockroom and its sateittes.tee 17. Customer Proceew can also be

replaced by See 27. BioMedicalEngineering Customer Process when

appropnste.

26. Billing

/‘Jr

Vendor sends University ofMichigan Hosçitals Ciii for

parts ordered and delivered.

No Was the bill sent to

Accounting stamps Dliireceived.

1Accounting sends bill to Data

Entry Cleric in Stockroom.

•1Data Entry Cleric verities bili.

Data Entry Cleric stamps CiSand enters account number.

The Ciii cannot go toAccounting without account

number.

Data Entry Cleric gs hitoAREV to verify coat on

invoice is the same as onAAEV.

A theNo

Data Entry Cleric goes toBuyer for them to obtain acredit from the company.

Kevin MacKillopl LJniversit’ of Michigan Hospitalr4/24/1 994j21:1 6 a:’26bil1.acl( page 1 of 31

Hold invoice for credit.

No

Stockroom Business Managersigns bill.

Data Entry Cleric sends bill to]coundn for pasnent

.1Accounting pays bitt.

Accounting places Slicker Ofl

bill containing the amountpaid, account number billed,

and the purchase ordernumber.

.r4r

Accounting sends bill to DataEntry Cleric in Stockroom.

Data Entry Clerk verities thatthe actual purchase order

number matches the stickerpurchase number.

<thearn>.Yes

Data Entry Cleric callsAccounting.

Error is corrected over thephone, or transfer voucher to

debit wrong account andcredit correct account made.

I Kevin MacKillopi University of Michigan Hospital 4/24/1994121:161 a:’26biILacIl 1i 2 of 31

0

o

n0

0 m Q CI

27. BioMedical Engineering Customer

[Swa

/Customer arrives at

BloMedicet EngineeringStockroom or satellite

stations.

NoIs it after 3:30 pm?

Yes

•

_

Customer gets a BioMedicalEngineering buyer or

tecitnidan to give access toBioMedical Stockroom or

satellite stations.

Customer picks up pinkworksheet near BioMedical

Stockroom or satelliteentrance.

Customer completesworksheet header erth work

order number and otherthtomtstion.

Does thees customer know

where the part

Customer saks BioMediostEngineenng buyer br

assistance.

_______________________

[1Ikevin Mackiliopi University of Michigan Hospitall 4124/1994121:251 a:\27biocus.acl( I page 1 of 4

D

ON

V

______

Did customer No Customer checks column 2get me quantity of part (not in bin) on worksheet br

needed? corresponding part.

Yes

Was the C atCustomer completes No parts in the bin less

worksheet with quantity taken, theft the quantityneeded?

Yes

Did thecustornertake last part

Customer checks column IQast item) on worksheet for

corresponding part.

Does thecustomer need more Yei

ajoMedical parts?

No

Customer informs BioMedicalEngineering buyer of

stockout.

BioMedical Engineering buyerbeqins the re-order process

before receiving a screen print ofparts that need to be re-ordered

from the Oats Entry Clerk.

123. B4oMed

Engineenng Order Process.

1See 18. Inventory

Tracking System Process.

Customer eaves.

Customer takes remainingparts in bin.

Customer checks column I(taSt item) to indicate they

took the last item in tile binfor corresponding part.

Customer completes column 3(total quantity required) on

worksheet for correspondingpart.

Customer completes quantitytaken column on worksheet

for corresponding part.

Customer drops offworksheet to the OffIce

Assistant.

1JFOffice Assistant gives

worksheets to Data EntryOeik.

Kevin MacKlilopi University of MichiQan Hospitafl 4/24I1994 21 :25 a:\27biocus.aclj Ipage3of4l

‘3

Type in the quantity issued.

sthequantty NoIssued > quantity on

hand?

Yes

Are there anytsauequantttyonhand. morepartasonthe

sheet?

Yes

____

Mark worksheet withdIfference between quantity Enter next past 1.

Twa ‘a for QUIT In partS

Issued and quantity on hand.field.

1

___

the worksheet, enter theni andIf more transactIons are onj Cursor wilt drop to boffonr of

screen.place the worksheet aside.

Alter alt transactions on worksheetcompleted, make screen print and

I have stockkeeper do a physicalType ‘0’ (zero) to save

Inventory count of the part amountInformation Issued.

In question.

_______________________

When screen prrnt Is returnedfrom the stockkeeper,

compare the inventory on theComputer automatically pnrrts

screen print to the Inventoryout report of Issued items.

count from the stockkeeper.

________________________

1

___

Check receipts. Type ‘0’ tor OUtT.

a5tNo_

4,Yes\ Complete transaction and anything on-order Intomorrow. \ Place stoclc count, difference

screen 5ea a total Infield 12.

Receive on screen 10 stockcount and difference amount

I Kevin MacKillopi University of Michigan Hospitall 4/24/1994120:571 a:\21 issues.acil [i3 oiAi

sjuowsn1pyjoojg

flfl

23. BioMedical Engineering Order

[Kevin MacKillopj University of Michigan Hospitall 4/24/1 9941 22:091 a:\.23bio or.aclI page 1 of 1

24. Re-Ordering Stock Items

_______

/ /

\Stockkeeper discoversernptybln.

/

CtreckMMS.

EJr

performing theYes

Stockkeeper looks in MMS tofind max re-order quantity.

NO_<blenketord— es%.. vendor for this

Buyer or Slockkeeper calls Buyer or Stocldteeper togs

vendor end gets pricing for order in ARE’? and pulls

part and delivery date. control C from AREV.

•1

______________

the part less No

[iuyer

or Stocirkesper celte in anorder to the vendor and asks for Iprice and delivery date. Buyer or I

Stocickeeper gives vendor Icontrol C and purchase order C.

Buyer or Stockkeeper loPs Buyer or Stocirkesper callsBuyer or Stockkeeper I

accesses ARE’? to input the IorderlnAfiEVandpulls

control

* from ARE’?.

iPurchescng. items ordered

________________

Ei

__

I Kevin MacKillopI University of Michigan Hospital! 4/24/1994122:09! a:’24reordracll I page 1 of 41

1\ Buyer receives screen

\ print of part item to be

\ re-ordered trom Data

\ Entry Clerk

1Buyer checks that the pert bin

is empty.

Nojnthebin?

Yes

1

noteWas there sor photocopy of

worksheet requesting asorder quantity from a

customer?

Yes

: lDhectcMMS.

Buyer looks st Year to DateSold for the pert.

*

Is the re-orderlevel reached?

No

e

Look at Mex Re-orderqusntt for the pert.

Do not order.

Analyze both quentitles endother factors to detennine themax re-order quantIty for this

purchese.

IChange max re-order quantity

In MMS for the pert to themax re-order quantity just

determined.

I Kevin MaoKilIopj University of Miohiqan HosDitaif4/24/1 9941 22:091 a:’24reordr.aCII page 2 of 41

weisAs6u!NOBJ!Aojuenui•9I.

)

Buoqod$itpSwpwenjepspedeqietspeLppus

e6sqDsdsuedoieOee)pcoo)9

ON

Aiatuiea,BuuueoesWOOeflIDOlS6I-

Stockkeeper logs receipt ol

—4 delivery and items deliveredinto AFtEV.

Stocidreeper prints 2 copies01 completed AREVReceiving screen.

One print out placed withpackage.

Other print out of AREVReceiving screen attached topacking slip and given to Data

Entry Cleric

Was the order Yes Stocickeeper places itemsreceived for stock from the package in their

items? corresponding bins.

No

Stockiceeper places thepackage on shelf.

Customer agns book of fS Does customer come

package thernselvea?

No

Stocidceeper delivers thepackages to its foremans

office at 7:00 a.m. the nextday.

Customer signs book ofdeliveries conhirming the

package was delivered to him.

Ikevin MacKlUopi University of Michigan Hospitafl 4/24/1 994 22:29 a:\1 grecdeI.adl page 2 of 21

iflONOOTS.o

sanssiPBcisu’wi

No:J

Buyer arranges for purotiase Vendor delivers toto be picked up. Stockroom.

Order salves and Is deliveredCustomer receives part to the department tire nest

morning at 7:00am

•1

\ Stop. \

Kevin MaCkillop$ University of Miohigan Hospitali 4/24/1994122:081 a:’i1 6nonsttaCl] page 3 of 3$

J9WOSfl3L1.

[0

U gg